Free ACCA F2 (Accountant in Business) Questions and Answers — Questions and Answers
Question 1: Data is information that has undergone processing to give its recipients meaning.
- TRUE
- FALSE (Correct answer)
Correct answer: FALSE
The statement defines 'data' as 'information that has undergone processing to give its recipients meaning.' This definition is actually for *information*, not data. Data refers to raw, unprocessed facts and figures, while information is data that has been processed, organized, and structured to be meaningful and useful.
Question 2: In addition to offering piecework compensation, the organization assures its workers of receiving 80% of a time-based rate of pay, or $20 per hour for an eight-hour workday. The standard amount of time per output unit is three minutes. The pay rate for piecework is $18 per regular hour. What is the gross compensation of an employee on a given day if they create 200 units in eight hours?
- $160
- $128
- $180 (Correct answer)
- $144
Correct answer: $180
First, calculate the guaranteed minimum: 8 hours * $20/hour = $160, and 80% of this is $128. Next, calculate piecework earnings: the standard time per unit is 3 minutes, so 20 units are produced per hour (60/3). The piecework rate is $18 per regular hour, meaning $0.90 per unit ($18/20). For 200 units, the piecework earnings are 200 * $0.90 = $180. Since $180 (piecework) is greater than the $128 guaranteed minimum, the gross compensation is $180.
Question 3: The same percentage of people in each age group as there are in the population as a whole is included in the sample. Which kind of sampling is this an example of?
- Cluster Sampling
- Random Sampling
- Stratified Sampling (Correct answer)
- Systematic Sampling
Correct answer: Stratified Sampling
Stratified sampling involves dividing the population into distinct subgroups, or strata, based on shared characteristics like age. A sample is then drawn from each stratum in proportion to its size in the overall population. This method ensures that all relevant subgroups are represented in the sample, reflecting their true proportion in the population.
Question 4: Of the following, which one goes under the category of indirect labor?
- Forklift truck drivers in the stores of an engineering company (Correct answer)
- Assembly workers on a car production line
- Brick layers in a house building company
- Machinists in a factory producing clothes
Correct answer: Forklift truck drivers in the stores of an engineering company
Indirect labor costs are those that cannot be directly traced to specific products or services but are necessary for the overall production process. Forklift truck drivers in stores support the production by moving materials but are not directly involved in manufacturing a specific product unit. In contrast, assembly workers, brick layers, and machinists are directly involved in creating the product, making them direct labor.
Question 5: The choice was made to select the 12th item, and then every 20th item, in order to take a sample. Which kind of sampling is this an example of?
- Cluster Sampling
- Systematic Sampling (Correct answer)
- Stratified Sampling
- Random Sampling
Correct answer: Systematic Sampling
Systematic sampling involves selecting items from a population at regular intervals after a random starting point. In this scenario, selecting the 12th item and then every 20th item thereafter (e.g., 12th, 32nd, 52nd, etc.) perfectly describes this method. This ensures a spread-out sample across the population list.
Question 6: Which cost unit would be most suitable for a manufacturer of cakes? Price per:
- Kg
- Cake
- Production Run
- Batch (Correct answer)
Correct answer: Batch
A cost unit is a unit of product or service for which costs are ascertained. For a cake manufacturer, it's common to produce multiple identical cakes in a single run or 'batch.' Therefore, calculating the cost per batch is often the most practical and suitable cost unit, as it efficiently accounts for shared production costs before breaking it down further if needed.
Question 7: When calculating the cost of a product, one example of a direct expense in an organization that produces several distinct goods in a single huge plant is the factory's rent.
- TRUE
- FALSE (Correct answer)
Correct answer: FALSE
Direct expenses are costs that can be directly and wholly attributed to a specific cost unit or product. Factory rent, however, is a general overhead cost incurred for the entire plant, regardless of the specific products produced. It cannot be directly traced to a single product and must be allocated, making it an indirect expense rather than a direct one.
Free ACCA F2 (Accountant in Business) Questions and Answers
Data is information that has undergone processing to give its recipients meaning.